What's Next After SEC Registration?

After registering your non-stock, non-profit organization with the Securities and Exchange Commission (SEC) in the Philippines, the next crucial step is to register with the Bureau of Internal Revenue (BIR). This process ensures your organization complies with tax regulations and can operate legally. Here's a detailed guide to assist you:

1. Prepare the Required Documents:

BIR Form 1903: Application for Registration for Corporations/Partnerships (Taxable/Non-Taxable).

SEC Certificate of Incorporation: Proof of your organization's registration with the SEC.

Articles of Incorporation and By-Laws: Foundational documents of your organization.

Mayor’s Permit or Application for Mayor’s Permit: Authorization from the local government unit where your organization operates. If the permit is still being processed, provide a duly received application form.

Proof of Address: Such as a Contract of Lease or Land Title.

Valid Identification: Government-issued ID of the organization's president or authorized representative.

2. Submit Documents to the Appropriate Revenue District Office (RDO):

Visit the RDO that has jurisdiction over your organization's primary address. Submit the completed BIR Form 1903 along with the required documents.

3. Pay the Annual Registration Fee:

The annual registration fee is PHP 500.00. This can be paid through:

Authorized Agent Banks (AABs): Banks accredited by the BIR within the RDO's jurisdiction.

BIR's Electronic Payment Channels: Such as GCash, LandBank, or Development Bank of the Philippines (DBP).

4. Pay the Documentary Stamp Tax (DST):

Depending on your organization's activities, you may need to pay DST on certain documents, such as the Articles of Incorporation and lease agreements. The amount varies based on the specifics of these documents.

5. Attend the Taxpayer's Initial Briefing:

The BIR often conducts briefings for new registrants to inform them of their tax responsibilities and compliance requirements. Attendance is typically mandatory.

6. Secure the Certificate of Registration (BIR Form 2303):

After processing, the BIR will issue your Certificate of Registration, which outlines the taxes your organization is required to file and pay.

7. Register Books of Accounts:

All organizations are required to maintain and register Books of Accounts. These can be:

Manual Books: Physical ledgers like General Journal, General Ledger, Cash Receipt, and Cash Disbursement books.

Loose-Leaf Books: Computer-printed sheets bound and registered with the BIR.

Computerized Accounting System (CAS): Requires prior approval from the BIR before implementation.

8. Apply for Authority to Print (ATP) Receipts and Invoices:

Even as a non-profit, if your organization engages in transactions requiring official receipts or sales invoices, you must secure an ATP using BIR Form 1906. Once approved, have your receipts and invoices printed by a BIR-accredited printer.

9. Display the "Ask for Receipt" Notice:

The BIR will provide an "Ask for Receipt" notice, which must be prominently displayed at your organization's place of business.

10. Apply for Tax Exemption Ruling (if applicable):

Non-stock, non-profit organizations may be eligible for tax-exempt status. To obtain this, you need to apply for a Tax Exemption Ruling by submitting:

Application Letter: Citing the specific paragraph under Section 30 of the National Internal Revenue Code as the basis for tax exemption.

Certified True Copies: Of the latest Articles of Incorporation, By-Laws, and SEC Certificate of Registration.

Financial Statements: Audited financial statements for the past three years or financial projections for newly established organizations.

Other Supporting Documents: As may be required by the BIR.

Submit these documents to the BIR's Revenue District Office where your organization is registered. The Tax Exemption Ruling, once granted, is typically valid for three years and must be renewed accordingly. 

Completing these steps will ensure your non-stock, non-profit organization is duly registered with the BIR and compliant with Philippine tax laws.